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A $1.000 par value bond has an annual coupon rate of 9%. Current yields on similar risk bonds are 8%, what is the aftertax cost
A $1.000 par value bond has an annual coupon rate of 9%. Current yields on similar risk bonds are 8%, what is the aftertax cost of debt if the firm's tax rate is 30%? Upon issue of the bond you the firm netted $970 after flotation costs Select one a 5 60% b 5 77% C 8.25% d. 8.00% Next page age Co W O Si here to search
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Managerial Accounting
Authors: Cataldo Cpa II, Cma Cgma A J
2nd Edition
1634929241, 978-1634929240
